Rapid growth and guidance from Accelerant (NYSE: ARX) in Q1 2026
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Accelerant Holdings reported strong first quarter 2026 growth while remaining GAAP-loss making. Exchange Written Premium reached $1.14 billion, up 16% year over year, and Operating Revenues rose 57% to $273.2 million.
Adjusted EBITDA increased 70% to $66.1 million, with a 24% margin, and adjusted net income grew 118% to $37.7 million, or $0.17 per diluted share, even as GAAP net results showed a $4.1 million loss. The gross loss ratio improved slightly to 52.1% from 53.3%, reflecting stable underwriting performance.
The company highlighted rapid expansion of its fee-based, capital-light model: fee-based Adjusted EBITDA reached $60 million, up 112% year over year, and third-party direct written premium rose to 41% of Exchange Written Premium versus 19% a year earlier. Accelerant repurchased 828,333 Class A shares for $11 million.
For 2026, management expects Exchange Written Premium of at least $5.2 billion and Adjusted EBITDA of at least $285 million. Second quarter 2026 guidance includes Exchange Written Premium of $1.27–$1.32 billion, third-party direct written premium of $580–$620 million, and Adjusted EBITDA of $60–$66 million.
Positive
- Strong non-GAAP profitability and growth: Q1 2026 Adjusted EBITDA rose 70% year over year to $66.1 million on Operating Revenues of $273.2 million, and adjusted net income increased 118% to $37.7 million, highlighting rapid scaling of the platform.
- Shift toward capital-light fee income: Fee-based Adjusted EBITDA reached $60 million, up 112% year over year, while third-party direct written premium expanded to 41% of Exchange Written Premium versus 19% a year earlier, reducing dependence on Accelerant’s own balance sheet.
- Ambitious 2026 outlook: Management projects at least $5.2 billion of Exchange Written Premium and at least $285 million of Adjusted EBITDA for full-year 2026, implying continued double-digit growth from current levels.
Negative
- GAAP net loss despite strong growth: The company reported a Q1 2026 GAAP net loss of $4.1 million versus net income of $7.8 million a year earlier, driven in part by significantly higher share-based compensation and other expenses.
- Weaker cash generation: Net cash used in operating activities was $21.4 million in Q1 2026 compared with $91.8 million provided in the prior-year quarter, while total cash, cash equivalents and restricted cash declined from $1,799.3 million at December 31, 2025 to $1,536.5 million at March 31, 2026.
Insights
Accelerant is scaling fast on a fee-based model but GAAP profit lags.
Accelerant delivered strong Q1 2026 operating growth, with Operating Revenues of $273.2M up 57% year over year and Exchange Written Premium of $1.14B up 16%. Adjusted EBITDA rose to $66.1M, a 70% increase, and adjusted net income more than doubled.
The business mix is shifting toward capital-light fee income. Fee-based Adjusted EBITDA reached $60M, up 112% year over year, while third-party direct written premium climbed to 41% of Exchange Written Premium versus 19% a year earlier. The gross loss ratio of 52.1% suggests underwriting performance remains consistent.
However, GAAP results showed a $4.1M net loss and operating cash flow swung to an outflow of $21.4M from an inflow in the prior year period. Management guides to at least $5.2B Exchange Written Premium and $285M Adjusted EBITDA for full-year 2026, so future filings will clarify whether growth, loss ratios, and cash generation track these targets.
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Exchange Written Premium: $1,138.7M
Operating Revenues: $273.2M
Adjusted EBITDA: $66.1M
+5 more
8 metrics
Exchange Written Premium
$1,138.7M
Three months ended March 31, 2026; 16% year-over-year growth
Operating Revenues
$273.2M
Q1 2026 non-GAAP operating revenues, up 57% year over year
Adjusted EBITDA
$66.1M
Q1 2026; 24% Adjusted EBITDA margin and 70% year-over-year growth
Adjusted net income
$37.7M
Q1 2026; 118% year-over-year increase with $0.17 adjusted EPS
GAAP net (loss) income
($4.1M)
Q1 2026 GAAP net loss versus $7.8M net income in Q1 2025
Gross loss ratio
52.1%
Three months ended March 31, 2026, versus 53.3% in 2025
Cash, cash equivalents and restricted cash
$1,536.5M
Balance at March 31, 2026; down from $1,799.3M at December 31, 2025
Full-year 2026 Adjusted EBITDA guidance
$285M
Minimum Adjusted EBITDA expected for full-year 2026
Key Terms
Exchange Written Premium, Adjusted EBITDA, Gross loss ratio, Net revenue retention, +2 more
6 terms
Adjusted EBITDA financial
"Adjusted EBITDA (1) | $ 66.1 | | $ 38.8 Adjusted EBITDA margin (1) | 24 %"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Gross loss ratio financial
"Gross loss ratio | 52.1 % | | 53.3 %"
The gross loss ratio is the percentage of an insurer’s premium revenue that is paid out as claims before accounting for reinsurance or other recoveries. It shows, in simple percentage terms, how much of the money customers pay is going straight to cover losses; like measuring how much of a store’s sales are eaten by product returns. Investors use it to judge underwriting health and whether an insurer’s core business is profitable or exposed to rising claim costs.
Net revenue retention financial
"Net revenue retention | 116 % | | 157 %"
Net revenue retention measures how much revenue a company keeps from its existing customers over a set period after accounting for customers who leave, reductions in spending, and any increases from upsells or cross-sells. For investors it shows whether a company can grow sales from the customers it already has—like checking whether a store is making more or less money from its regular shoppers—which signals business health and future revenue durability.
Risk Capital Partners financial
"Risk Capital Partners that rely on Accelerant to source, manage, and monitor portfolios of specialty risk."
Non-GAAP financial measures regulatory
"Information regarding the non-GAAP financial measures included in this press release, including definitions of these measures..."
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Earnings Snapshot
Operating Revenues: $273.2M · Guidance included
Q1 2026
Operating Revenues
$273.2M
+57% YoY
Exchange Written Premium
$1,138.7M
+16% YoY
Adjusted EBITDA
$66.1M
+70% YoY
Adjusted net income
$37.7M
+118% YoY
Gross loss ratio
52.1%
Improved from 53.3% YoY
Guidance
For Q2 2026, Exchange Written Premium of $1.27–$1.32B and Adjusted EBITDA of $60–$66M; for full-year 2026, at least $5.2B Exchange Written Premium and at least $285M Adjusted EBITDA.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________
FORM 8-K
___________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 13, 2026
___________________________________
(Exact Name of Registrant as Specified in its Charter)
___________________________________
(State or Other Jurisdiction of Incorporation or Organization) | (Commission File Number) | (I.R.S. Employer Identification Number) | ||||||
Accelerant Holdings c/o Accelerant Re (Cayman) Ltd. | ||||||||
1 ( | ||||||||
(Address, Including Zip Code, and Telephone Number, Including Area Code, of Registrant’s Principal Executive Offices) | ||||||||
Not Applicable | ||||||||
(Former Name or Former Address, if Changed Since Last Report) | ||||||||
___________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||||||||
Class A common shares, $0.0000011951862 par value per share | ||||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒
Item 2.02. Results of Operations and Financial Condition
On May 13, 2026, Accelerant Holdings (the “Company,” “we,” or “our”) issued a press release relating to our earnings for the first quarter ended March 31, 2026 (the “Earnings Release”). We have attached a copy of the Earnings Release as Exhibit 99.1.
Item 7.01. Regulation FD Disclosure
On May 13, 2026, the Company posted a presentation to its website at https://investor.accelerant.ai/. A copy of the presentation is furnished as Exhibit 99.2 to this Report. The Company expects to use the presentation, in whole or in part, and possibly with modifications, in connection with the earnings call with investors, analysts and others.
The information contained in the presentation is summary information that is intended to be considered in the context of the Company’s Securities and Exchange Commission (“SEC”) filings and other public announcements that the Company may make, by press release or otherwise, from time to time. The presentation speaks only as of the date of this Report. The Company undertakes no duty or obligation to publicly update or revise the information contained in the presentation, although it may do so from time to time. Any such updating may be made through the filing of other reports or documents with the SEC, through press releases or through other public disclosure. In addition, the exhibit furnished herewith contains statements intended as “forward-looking statements” that are subject to the cautionary statements about forward-looking statements set forth in such exhibit. By furnishing the information contained in the presentation, the Company makes no admission as to the materiality of any information in the presentation that is required to be disclosed solely by reason of Regulation FD.
The information contained in Items 2.02 and 7.01 of this Report (as well as in Exhibits 99.1 and 99.2 attached hereto) is furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and such information shall not be deemed to be incorporated by reference into any of the Company’s filings under the Securities Act of 1933, as amended or the Exchange Act.
Item 9.01. Financial Statements and Exhibits
Exhibit No. | Description | |||||||
99.1 | Earnings release issued by the Company on May 13, 2026 | |||||||
99.2 | Earnings presentation issued by the Company on May 13, 2026 | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
Signature
Pursuant to the requirements of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: May 13, 2026
ACCELERANT HOLDINGS | |||||
By: | /s/ Linda S. Huber | ||||
Linda S. Huber | |||||
Chief Financial Officer | |||||
Accelerant Announces First Quarter 2026 Results
First Quarter 2026 Results
•Exchange Written Premium of $1.14 billion grew 16% year-over-year
•Third-Party Direct Written Premium accounted for 41% of Exchange Written Premium volume
•Pre-tax income of $2 million, net loss of $4 million, net loss per diluted share of $0.02
•Adjusted net income of $38 million increased 118% over the prior year, and adjusted net income per diluted share was up 113% to $0.17
•Adjusted EBITDA of $66 million
•Repurchased 828,333 Class A common shares for $11 million
Second Quarter and Full Year 2026 Outlook
•Exchange Written Premium expected to be $1.27 billion to $1.32 billion in the second quarter of 2026 and at least $5.2 billion for the full year 2026
•Third-Party Direct Written Premium expected to be $580 million to $620 million in the second quarter of 2026 and at least $2.3 billion for the full year 2026
•Adjusted EBITDA expected to be $60 million to $66 million in the second quarter of 2026 and at least $285 million for the full year 2026, including $276 million of fee-based (non-Underwriting Segment) Adjusted EBITDA
ATLANTA--(BUSINESS WIRE)-- Accelerant Holdings (NYSE: ARX), a data-driven company modernizing the specialty insurance marketplace through the Accelerant Risk Exchange, today announced financial results for the first quarter ended March 31, 2026.
“We had an excellent first quarter. We delivered strong performance against all six of our KPIs, reflecting the ongoing momentum across our business,” said Jeff Radke, Chairman and CEO. “We are attracting and growing with the best MGAs, making them even better with our data, analytics and increasingly autonomous underwriting tools. And we are connecting them to diversified, committed and high-quality risk capital partners that are looking to generate attractive, predictable returns. We are well on our way to making Accelerant the rails on which specialty insurance runs.”
“Our first quarter financial results are further proof in the underlying growth embedded in our business model,” said Linda S. Huber, Accelerant’s Chief Financial Officer. “Exchange Written Premium eclipsed $1 billion for the fourth quarter in a row, growing 16% year-over-year. Importantly, our fee-based operating revenue and adjusted EBITDA increased 52% and 112%, respectively, as we focus on growing our capital-light businesses. Looking ahead, we continue to expect a very strong 2026 driven by the high-quality and recurring fee generation of the Accelerant Risk Exchange.”
Jeff Radke continued, “I’d like to welcome our two new independent Board members, David Talach and Simon Wainwright, who were elected at our annual general meeting of shareholders earlier this week. Both are highly skilled and talented executives and bring diverse perspectives that will be valuable to the Board and the management team. Accelerant will greatly benefit from their experience, expertise and counsel.”
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First Quarter 2026 Key Results
| Three Months Ended March 31, | |||||||||||
| (in millions, unless indicated) | 2026 | 2025 | |||||||||
| Number of members | 296 | 232 | |||||||||
| Net revenue retention | 116 % | 157 % | |||||||||
| Exchange written premium | $ 1,138.7 | $ 985.2 | |||||||||
| Accelerant direct written premium | 59 % | 81 % | |||||||||
| Third-party direct written premium | 41 % | 19 % | |||||||||
| Accelerant-retained exchange premium | 10 % | 8 % | |||||||||
| Exchange written premium growth rate | 16 % | 69 % | |||||||||
| Total revenues | $ 273.3 | $ 178.0 | |||||||||
| Gross loss ratio | 52.1 % | 53.3 % | |||||||||
| Income before income taxes | $ 2.0 | $ 15.5 | |||||||||
| Net (loss) income | $ (4.1) | $ 7.8 | |||||||||
Non-GAAP financial measures (1) | |||||||||||
Operating revenues (1) | $ 273.2 | $ 174.0 | |||||||||
Adjusted EBITDA (1) | $ 66.1 | $ 38.8 | |||||||||
Adjusted EBITDA margin (1) | 24 % | 22 % | |||||||||
Adjusted net income (1) | $ 37.7 | $ 17.3 | |||||||||
Adjusted earnings per diluted share (1) | $ 0.17 | $ 0.08 | |||||||||
(1) Information regarding the non-GAAP financial measures included in this press release, including definitions of these measures, reconciliations to the most comparable GAAP measures and limitations related thereto, is described below under “Use of Non-GAAP Financial Measures” and in the tables attached to this press release. Beginning with first quarter of 2026, Accelerant updated definitions for these non-GAAP financial measures to exclude the impact of net realized and unrealized investment gains or losses. Net realized and unrealized investment gains were $0.1 million and $4.0 million in the first quarter of 2026 and 2025, respectively. Figures for the first quarter of 2025 in the table above were recast to reflect the new presentation.
Conference Call Information
Accelerant will host a webcast and conference call to discuss the first quarter financial results on May 14, 2026, at 8:00 a.m. ET. A live webcast of the call can be accessed on Accelerant’s Investor Relations website at https://investor.accelerant.ai. To access the call via telephone in North America, please dial 800-715-9871. For callers outside the United States, please dial +1 646-307-1963. Participants should reference the conference call ID code 6232893 after dialing in.
A webcast replay of the call will be available on Accelerant's website at accelerant.ai in its Investors section for a year following the call.
About Accelerant
Accelerant is a data-driven risk exchange connecting underwriters of specialty insurance risk with risk capital providers. Accelerant was founded in 2018 by a group of longtime insurance industry executives and technology experts who shared a vision of rebuilding the way risk is exchanged – so that it works better, for everyone. The Accelerant Risk Exchange does business across 22 different countries and approximately 700 specialty insurance products.
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Accelerant generates revenue by charging fees on the Exchange Written Premium shared with Risk Capital Partners that rely on Accelerant to source, manage, and monitor portfolios of specialty risk. There was $4.34 billion in Exchange Written Premium during the trailing twelve months ended March 31, 2026. Accelerant harnesses advanced data analytics and AI to optimize risk management, align incentives across the insurance value chain, and provide transparent and efficient solutions for MGAs and Risk Capital partners globally.
| Investor Relations | Media Relations | |||||||
| Ray Iardella | Chelsea Allison | |||||||
| ray.iardella@accelins.com | chelsea@heycommand.com | |||||||
Forward-Looking Statements
All statements in this release and in the corresponding earnings call that are not historical are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and involve substantial risks and uncertainties. Accelerant Holdings (“we” or “our”) generally identifies forward-looking statements by use of forward-looking terminology such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “projection,” “seek,” “should,” “will” or “would,” or the negative thereof or other variations thereon or comparable terminology. In particular, statements about the markets in which we operate, including growth of our various markets, and our expectations, beliefs, plans, strategies, objectives, prospects, assumptions, or future events or performance contained in this release and in the corresponding earnings call are forward-looking statements.
We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. These and other important factors, including those discussed in Accelerant’s Annual Report on Form 10-K for the year ended December 31, 2025 under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” as may be supplemented in Accelerant’s subsequent Quarterly Reports on Form 10-Q and in other periodic and current reports filed by Accelerant with the SEC, may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements, or could affect our share price.
Use of Non-GAAP Financial Measures
In assessing the performance of our business, non-GAAP financial measures are used that are derived from our consolidated financial information but are not presented in our consolidated financial statements prepared in accordance with U.S. GAAP. We consider these non-GAAP financial measures to be useful metrics for management and investors to evaluate our financial performance by excluding certain items that are related to our non-core business operations and therefore are not considered to be directly attributable to our underlying operating performance.
3
These non-GAAP financial measures, as described below, should not be considered substitutes for the reported results prepared in accordance with U.S. GAAP and should not be considered in isolation or as alternatives to U.S. GAAP net income or net (loss) as indicators of our financial performance. Although we use these non-GAAP financial measures to assess the performance of our business, such use is limited because it does not include certain material costs necessary to operate our business. Our presentation of these non-GAAP financial measures should not be construed as indications that our future results will be unaffected by unusual or non-recurring items. These non-GAAP financial measures, as determined and presented by us, may not be comparable to related or similarly titled measures reported by other companies.
The following non-GAAP financial measures are used in this document or in other disclosures we make from time to time:
Adjusted EBITDA, Adjusted Net Income (Loss), and Adjusted Earnings per Diluted Share
We define "Adjusted EBITDA" as U.S. GAAP net income (loss) less the impact of depreciation and amortization, interest expenses, income tax expenses and the following items:
i.Net realized and unrealized gains (losses) on investments: Primarily represents changes in fair value of investment funds, realized gains and losses on dispositions of investments, and changes in fair value of certain other equity security investments accounted for under the measurement alternative where we adjust fair value based on observable price movements in such, or similar, investments.
ii.Other expenses: Represents costs related to our non-core business operations, primarily related to our global enterprise resource planning system and integrated financial reporting systems, and legal and advisory costs in connection with corporate development activities including mergers and acquisitions, capital raising activities and entity formations that support our growing business, and Mission profit sharing expenses.
iii.Non-recurring profits interest distribution expenses resulting from the IPO: Represents non-cash profits interest distribution expenses related to the settlement of all outstanding profits interest awards through the distribution of our 65,270,453 Class A common shares held by Accelerant Holdings LP to certain of our officers and employees that fully vested upon the IPO. These expenses were entirely offset by a corresponding capital contribution for that distribution of shares. These expenses only occurred at one point in time (July 2025) and will not recur.
iv.Share-based compensation expenses included within general and administrative expenses: Represents non-cash expense related to the fair value of share-based equity awards granted to employees and directors, including restricted stock units and stock options and other awards that can settle in cash, recognized over the requisite service period for the awards.
v.Net foreign currency exchange gains (losses): Represents non-cash foreign currency gains or losses related to transactions in currencies other than an operation’s functional currency and are excluded both on the basis of volatility and that such amounts are largely offset by corresponding changes in other comprehensive income primarily based on our intercompany reinsurance.
We define "Adjusted Net Income (Loss)" as U.S. GAAP net income (loss) excluding the impact of the following items:
i.net realized and unrealized gains (losses) on investments;
ii.other expenses;
iii.non-recurring profits interest distribution expenses resulting from the IPO;
4
iv.share-based compensation expenses included within general and administrative expenses;
v.the tax effect of the above adjustments.
We define “Adjusted Earnings per Diluted Share” as adjusted net income for a period divided by the corresponding weighted average diluted shares on a U.S. GAAP basis. (GAAP diluted shares are used for simplicity and that any difference from recalculating such diluted shares using adjusted income is expected to be immaterial.)
Operating Revenues
We define “Operating Revenues” as U.S. GAAP revenues less the impact of net realized and unrealized gains (losses) on investments.
Adjusted EBITDA Margin
We define “Adjusted EBITDA Margin” as Adjusted EBITDA divided by Operating Revenues. Adjusted EBITDA Margin is an internal performance measure used in the management of our operations.
The reconciliation of the above non-GAAP measures to each of their most directly comparable GAAP financial measures is set forth in the reconciliation table accompanying this document.
5
Accelerant Holdings
Condensed Consolidated Statements of Operations
(in millions, except per share amounts)
(unaudited)
| Three Months Ended March 31, | |||||||||||
| (expressed in millions of US dollars, except per share data) | 2026 | 2025 | |||||||||
| Revenues | |||||||||||
Ceding commission income | $ 80.5 | $ 70.7 | |||||||||
Direct commission income | 50.8 | 28.1 | |||||||||
Net earned premiums | 129.8 | 63.0 | |||||||||
Net investment income | 12.1 | 12.2 | |||||||||
Net realized gains on investments | 0.1 | 2.3 | |||||||||
Net unrealized gains on investments | — | 1.7 | |||||||||
| Total revenues | 273.3 | 178.0 | |||||||||
| Expenses | |||||||||||
| Losses and loss adjustment expenses | 81.8 | 45.2 | |||||||||
| Amortization of deferred acquisition costs | 33.6 | 17.1 | |||||||||
| General and administrative expenses | 123.8 | 75.3 | |||||||||
| Interest expenses | 2.5 | 2.6 | |||||||||
| Depreciation and amortization | 10.0 | 7.4 | |||||||||
| Net foreign exchange losses | 1.9 | 3.1 | |||||||||
| Other expenses | 17.7 | 11.8 | |||||||||
| Total expenses | 271.3 | 162.5 | |||||||||
| Income before income taxes | 2.0 | 15.5 | |||||||||
| Income tax expense | (6.1) | (7.7) | |||||||||
| Net (loss) income | (4.1) | 7.8 | |||||||||
| Adjustment for net income attributable to non-controlling interests | (1.1) | (1.3) | |||||||||
| Net (loss) income attributable to Accelerant common shareholders | $ (5.2) | $ 6.5 | |||||||||
Net (loss) income attributable to Accelerant per common share: | |||||||||||
| Basic | $ (0.02) | $ 0.04 | |||||||||
| Diluted | $ (0.02) | $ 0.03 | |||||||||
| Weighted-average common shares outstanding: | |||||||||||
| Basic | 221,984,101 | 166,185,094 | |||||||||
| Diluted | 221,984,101 | 205,273,147 | |||||||||
6
Accelerant Holdings
Condensed Consolidated Balance Sheets
(in millions, except par value)
(unaudited)
| March 31, 2026 | December 31, 2025 | ||||||||||
| (expressed in millions of US dollars, except share data) | |||||||||||
| Assets | |||||||||||
| Investments | |||||||||||
Short-term investments available for sale, at fair value (amortized cost 2026: $202.8 and 2025: $41.5) | $ 202.8 | $ 41.6 | |||||||||
Fixed maturity securities available for sale, at fair value (amortized cost 2026: $692.3 and 2025: $665.6) | 687.4 | 670.4 | |||||||||
| Equity method investments | 11.8 | 10.4 | |||||||||
| Other investments | 84.2 | 84.0 | |||||||||
| Total investments | 986.2 | 806.4 | |||||||||
Cash, cash equivalents and restricted cash | 1,536.5 | 1,799.3 | |||||||||
Premiums receivable (net of allowance 2026: $4.8 and 2025: $4.6) | 1,182.7 | 1,077.9 | |||||||||
| Ceded unearned premiums | 1,848.5 | 1,812.4 | |||||||||
| Reinsurance recoverables on unpaid losses and LAE | 1,858.5 | 1,682.3 | |||||||||
| Other reinsurance recoverables | 676.8 | 594.2 | |||||||||
| Deferred acquisition costs | 85.0 | 76.9 | |||||||||
| Goodwill and other intangible assets, net | 111.9 | 115.1 | |||||||||
| Capitalized technology development costs, net | 102.5 | 100.5 | |||||||||
| Other assets | 215.5 | 198.1 | |||||||||
| Total assets | $ 8,604.1 | $ 8,263.1 | |||||||||
| Liabilities and shareholders' equity | |||||||||||
| Unpaid losses and loss adjustment expenses | $ 2,129.2 | $ 2,005.4 | |||||||||
| Unearned premiums | 2,207.5 | 2,163.0 | |||||||||
| Payables to reinsurers | 1,243.4 | 1,220.6 | |||||||||
| Deferred ceding commissions | 247.8 | 232.5 | |||||||||
| Funds held under reinsurance | 1,275.6 | 1,200.3 | |||||||||
| Debt | 120.7 | 121.3 | |||||||||
| Accounts payable and other liabilities | 660.0 | 593.6 | |||||||||
| Total liabilities | 7,884.2 | 7,536.7 | |||||||||
| Commitments and contingencies | |||||||||||
Equity | |||||||||||
| Shareholders' equity | |||||||||||
Common shares (par value $0.000001 per share, issued and outstanding 2026: Class A - 115,973,643; Class B - 105,402,146 and 2025: Class A - 114,580,918; Class B - 107,241,428) | — | — | |||||||||
| Additional paid-in capital | 2,243.5 | 2,232.4 | |||||||||
| Accumulated other comprehensive (loss) income | (8.8) | 2.2 | |||||||||
| Accumulated deficit | (1,542.1) | (1,536.9) | |||||||||
| Total Accelerant shareholders' equity | 692.6 | 697.7 | |||||||||
| Non-controlling interests | 27.3 | 28.7 | |||||||||
| Total equity | 719.9 | 726.4 | |||||||||
| Total liabilities and equity | $ 8,604.1 | $ 8,263.1 | |||||||||
7
Accelerant Holdings
Condensed Consolidated Statements of Cash Flows
(in millions)
(unaudited)
| Three Months Ended March 31, | |||||||||||
(expressed in millions of US dollars) | 2026 | 2025 | |||||||||
| Cash flows from operating activities | |||||||||||
| Net (loss) income | $ | (4.1) | $ | 7.8 | |||||||
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | |||||||||||
| Non-cash revenues, expenses, gains and losses included in net (loss) income: | |||||||||||
| Net realized gains on investments | (0.1) | (2.3) | |||||||||
| Net unrealized gains on investments | — | (1.7) | |||||||||
| Earnings from equity method investments | (0.2) | (0.5) | |||||||||
| Share-based compensation expenses | 28.8 | 2.4 | |||||||||
| Depreciation and amortization | 10.0 | 7.4 | |||||||||
| Deferred income tax (benefit) expense | (0.4) | 0.3 | |||||||||
| Net foreign exchange losses | 1.9 | 3.1 | |||||||||
| Net accretion of discount on fixed maturity securities and short-term investments | (1.5) | (1.8) | |||||||||
| Other, net | 0.2 | 0.2 | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Premiums receivable | (110.0) | (55.7) | |||||||||
| Ceded unearned premiums | (40.9) | (138.0) | |||||||||
| Reinsurance recoverables on unpaid losses and loss adjustment expenses | (82.7) | (188.7) | |||||||||
| Other reinsurance recoverables | (86.6) | (2.0) | |||||||||
| Deferred acquisition costs | (7.8) | 4.3 | |||||||||
| Unpaid losses and loss adjustment expenses | 142.2 | 194.2 | |||||||||
| Unearned premiums | 61.8 | 155.0 | |||||||||
| Payables to reinsurers | 27.2 | 66.6 | |||||||||
| Deferred ceding commissions | 10.0 | 7.5 | |||||||||
| Funds held under reinsurance | (22.7) | 108.0 | |||||||||
| Other assets, accounts payable and other liabilities | 53.5 | (74.3) | |||||||||
| Net cash (used in) provided by operating activities | (21.4) | 91.8 | |||||||||
| Cash flows from investing activities | |||||||||||
| Proceeds from sales of: | |||||||||||
| Fixed maturity securities | 44.3 | 26.4 | |||||||||
| Maturities of fixed maturity securities | 14.1 | 15.8 | |||||||||
| Payments for purchases of: | |||||||||||
| Fixed maturity securities | (91.0) | (126.9) | |||||||||
| Equity method investments | (1.3) | — | |||||||||
| Net change in short-term investments | (161.2) | 2.5 | |||||||||
| Purchases of subsidiaries, net of cash acquired | (9.4) | — | |||||||||
| Capitalized technology development expenditures | (6.7) | (6.6) | |||||||||
| Other, net | (0.4) | (0.9) | |||||||||
| Net cash used in investing activities | (211.6) | (89.7) | |||||||||
| Cash flows from financing activities | |||||||||||
| Acquisition of common shares | (12.2) | — | |||||||||
| Payment of debt | (0.8) | — | |||||||||
| Acquisition of non-controlling interests in subsidiaries | (4.9) | — | |||||||||
| Dividends paid to non-controlling interests | (1.3) | (2.3) | |||||||||
| Net cash used in financing activities | (19.2) | (2.3) | |||||||||
| Net decrease in cash, cash equivalents and restricted cash | (252.2) | (0.2) | |||||||||
Effect of foreign currency rate changes on cash, cash equivalents and restricted cash | (10.6) | 17.9 | |||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 1,799.3 | 1,273.0 | |||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 1,536.5 | $ | 1,290.7 | |||||||
8
Accelerant Holdings
Financial Information by Segment
(in millions)
(unaudited)
| Three Months Ended March 31, 2026 | |||||||||||||||||||||||||||||||||||||||||
| (in millions) | Exchange Services | MGA Operations | Underwriting | Total Segments | Corporate and Other | Consolidation and elimination adjustments | Total | ||||||||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||||||||||||||
| Ceding commission income | $ — | $ — | $ 10.0 | $ 10.0 | $ — | $ 70.5 | $ 80.5 | ||||||||||||||||||||||||||||||||||
Direct commission income | |||||||||||||||||||||||||||||||||||||||||
| Affiliated entities | 72.7 | 28.8 | — | 101.5 | — | (101.5) | — | ||||||||||||||||||||||||||||||||||
| Unaffiliated entities | 26.4 | 24.4 | — | 50.8 | — | — | 50.8 | ||||||||||||||||||||||||||||||||||
| Net earned premiums | — | — | 129.8 | 129.8 | — | — | 129.8 | ||||||||||||||||||||||||||||||||||
| Net investment income | 0.9 | 0.9 | 9.2 | 11.0 | 1.1 | — | 12.1 | ||||||||||||||||||||||||||||||||||
| Operating revenues | 100.0 | 54.1 | 149.0 | 303.1 | 1.1 | (31.0) | 273.2 | ||||||||||||||||||||||||||||||||||
Losses and loss adjustment expenses | — | — | 81.8 | 81.8 | — | — | 81.8 | ||||||||||||||||||||||||||||||||||
Amortization of deferred acquisition costs | — | — | 49.0 | 49.0 | — | (15.4) | 33.6 | ||||||||||||||||||||||||||||||||||
General and administrative expenses | 32.7 | 37.3 | 11.7 | 81.7 | 19.3 | (9.3) | 91.7 | ||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ 67.3 | $ 16.8 | $ 6.5 | $ 90.6 | $ (18.2) | $ (6.3) | $ 66.1 | ||||||||||||||||||||||||||||||||||
| Net realized gains on investments | 0.1 | ||||||||||||||||||||||||||||||||||||||||
Share-based compensation expenses | (32.1) | ||||||||||||||||||||||||||||||||||||||||
| Interest expenses | (2.5) | ||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | (10.0) | ||||||||||||||||||||||||||||||||||||||||
| Net foreign exchange losses | (1.9) | ||||||||||||||||||||||||||||||||||||||||
| Other expenses | (17.7) | ||||||||||||||||||||||||||||||||||||||||
| Income before income taxes | $ 2.0 | ||||||||||||||||||||||||||||||||||||||||
9
Accelerant Holdings
Financial Information by Segment (continued)
(in millions)
(unaudited)
| Three Months Ended March 31, 2025 | |||||||||||||||||||||||||||||||||||||||||
| (in millions) | Exchange Services | MGA Operations | Underwriting | Total Segments | Corporate and Other | Consolidation and elimination adjustments | Total | ||||||||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||||||||||||||
| Ceding commission income | $ — | $ — | $ 19.2 | $ 19.2 | $ — | $ 51.5 | $ 70.7 | ||||||||||||||||||||||||||||||||||
Direct commission income | |||||||||||||||||||||||||||||||||||||||||
| Affiliated entities | 59.0 | 31.5 | — | 90.5 | — | (90.5) | — | ||||||||||||||||||||||||||||||||||
| Unaffiliated entities | 11.2 | 16.9 | — | 28.1 | — | — | 28.1 | ||||||||||||||||||||||||||||||||||
| Net earned premiums | — | — | 63.0 | 63.0 | — | — | 63.0 | ||||||||||||||||||||||||||||||||||
| Net investment income | 0.6 | 0.9 | 10.0 | 11.5 | 0.7 | — | 12.2 | ||||||||||||||||||||||||||||||||||
| Operating revenues | 70.8 | 49.3 | 92.2 | 212.3 | 0.7 | (39.0) | 174.0 | ||||||||||||||||||||||||||||||||||
Losses and loss adjustment expenses | — | — | 45.2 | 45.2 | — | — | 45.2 | ||||||||||||||||||||||||||||||||||
Amortization of deferred acquisition costs | — | — | 24.8 | 24.8 | — | (7.7) | 17.1 | ||||||||||||||||||||||||||||||||||
General and administrative expenses | 23.8 | 31.2 | 11.5 | 66.5 | 14.5 | (8.1) | 72.9 | ||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ 47.0 | $ 18.1 | $ 10.7 | $ 75.8 | $ (13.8) | $ (23.2) | $ 38.8 | ||||||||||||||||||||||||||||||||||
| Net realized gains on investments | 2.3 | ||||||||||||||||||||||||||||||||||||||||
| Net unrealized gains on investments | 1.7 | ||||||||||||||||||||||||||||||||||||||||
Share-based compensation expenses | (2.4) | ||||||||||||||||||||||||||||||||||||||||
| Interest expenses | (2.6) | ||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | (7.4) | ||||||||||||||||||||||||||||||||||||||||
Net foreign exchange losses | (3.1) | ||||||||||||||||||||||||||||||||||||||||
| Other expenses | (11.8) | ||||||||||||||||||||||||||||||||||||||||
| Income before income taxes | $ 15.5 | ||||||||||||||||||||||||||||||||||||||||
10
Accelerant Holdings
Reconciliation of GAAP to Non-GAAP Financial Results
(in millions)
(unaudited)
| Three Months Ended March 31, | |||||||||||
| (in millions) | 2026 | 2025 | |||||||||
Net (loss) income | $ (4.1) | $ 7.8 | |||||||||
Adjustments: | |||||||||||
Net realized gains on investments | (0.1) | (2.3) | |||||||||
Net unrealized gains on investments | — | (1.7) | |||||||||
Share-based compensation expenses | 32.1 | 2.4 | |||||||||
Other expenses | 17.7 | 11.8 | |||||||||
Tax effect of adjustments to net (loss) income (1) | (7.9) | (0.7) | |||||||||
Adjusted net income (2) | $ 37.7 | $ 17.3 | |||||||||
Adjustments: | |||||||||||
Add back tax effect of adjustments to net (loss) income | 7.9 | 0.7 | |||||||||
Income tax expense | 6.1 | 7.7 | |||||||||
Interest expenses | 2.5 | 2.6 | |||||||||
Depreciation and amortization | 10.0 | 7.4 | |||||||||
Net foreign exchange losses | 1.9 | 3.1 | |||||||||
Adjusted EBITDA (2) | $ 66.1 | $ 38.8 | |||||||||
Total revenues | 273.3 | 178.0 | |||||||||
Less: net realized and unrealized gains on investments | (0.1) | (4.0) | |||||||||
Operating revenues (2) | $ 273.2 | $ 174.0 | |||||||||
Adjusted EBITDA margin (2) | 24 % | 22 % | |||||||||
Adjusted net income (2) | $ 37.7 | $ 17.3 | |||||||||
Weighted average shares outstanding - diluted | 221,984,101 | 205,273,147 | |||||||||
Adjusted earnings per diluted share (2) | $ 0.17 | $ 0.08 | |||||||||
(1)The tax effect of the adjustments to net (loss) income for each period presented were calculated using the statutory tax rates for each of our legal entities where such revenue and expense adjustments were incurred, including certain non-taxing jurisdictions. The statutory tax rates used in the calculations were adjusted in instances where our legal entities have applied full valuation allowances to their respective deferred tax assets of unutilized net operating losses. As such, the tax effect for the respective years varies based on the jurisdictional mix of where the revenue and expense adjustment were incurred in each year.
(2)Beginning with first quarter of 2026, Accelerant updated the definitions for these non-GAAP financial measures to exclude the impact of net realized and unrealized investment gains or losses. Net realized and unrealized investment gains were $0.1 million and $4.0 million in the first quarter of 2026 and 2025, respectively. Figures for the first quarter of 2025 in the table above were recast to reflect the new presentation.
11
Accelerant: The Global Specialty Insurance Risk Exchange May 2026
2 Legal Disclaimer Forward-Looking Statements All statements in this presentation that are not historical are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and involve substantial risks and uncertainties. Accelerant Holdings (“we” or “our”) generally identifies forward-looking statements by use of forward-looking terminology such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “projection,” “seek,” “should,” “will” or “would,” or the negative thereof or other variations thereon or comparable terminology. In particular, statements about the markets in which we operate, including growth of our various markets, and our expectations, beliefs, plans, strategies, objectives, prospects, assumptions, or future events or performance contained in this release and in the corresponding earnings call are forward-looking statements. We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. These and other important factors, including those discussed in Accelerant’s Annual Report on Form 10-K for the year ended December 31, 2025 under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” as may be supplemented in Accelerant’s subsequent Quarterly Reports on Form 10-Q and in other periodic and current reports filed by Accelerant with the SEC, may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements, or could affect our share price. Market data and industry information used throughout this presentation are based on our knowledge of the industry and good faith estimates. We also relied, to the extent available, upon our review of independent industry surveys and publications and other publicly available information prepared by a number of third-party sources. All of the market data and industry information used in this presentation involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. Although we believe that these sources are reliable as of their respective dates, we cannot guarantee the accuracy or completeness of this information, and we have not independently verified this information. Projections, assumptions and estimates of our future performance and the future performance of the industry in which we operate are necessarily subject to a high degree of uncertainty and risk due to a variety of factors. These and other factors could cause results to differ materially from those expressed in our estimates and beliefs and in the estimates prepared by independent parties. Use of Non-GAAP Financial Measures In assessing the performance of our business, non-GAAP financial measures are used that are derived from our consolidated financial information but are not presented in our consolidated financial statements prepared in accordance with U.S. GAAP. We consider these non-GAAP financial measures to be useful metrics for management and investors to evaluate our financial performance by excluding certain items that are related to our non-core business operations and therefore are not considered to be directly attributable to our underlying operating performance. These non-GAAP financial measures, as described below, should not be considered substitutes for the reported results prepared in accordance with U.S. GAAP and should not be considered in isolation or as alternatives to U.S. GAAP net income or net (loss) as indicators of our financial performance. Although we use these non-GAAP financial measures to assess the performance of our business, such use is limited because it does not include certain material costs necessary to operate our business. Our presentation of these non-GAAP financial measures should not be construed as indications that our future results will be unaffected by unusual or non-recurring items. These non-GAAP financial measures, as determined and presented by us, may not be comparable to related or similarly titled measures reported by other companies. The following non-GAAP financial measures are used in this document or in other disclosures we make from time to time: Adjusted EBITDA, Adjusted Net Income (Loss), and Adjusted Earnings per Diluted Share We define "Adjusted EBITDA" as U.S. GAAP net income (loss) less the impact of depreciation and amortization, interest expenses, income tax expenses and the following items: • Net realized and unrealized gains (losses) on investments: Primarily represents changes in fair value of investment funds, realized gains and losses on dispositions of investments, and changes in fair value of certain other equity security investments accounted for under the measurement alternative where we adjust fair value based on observable price movements in such, or similar, investments. • Other expenses: Represents costs related to our non-core business operations, primarily related to our global enterprise resource planning system and integrated financial reporting systems, and legal and advisory costs in connection with corporate development activities including mergers and acquisitions, capital raising activities and entity formations that support our growing business, and Mission profit sharing expenses. • Non-recurring profits interest distribution expenses resulting from the IPO: Represents non-cash profits interest distribution expenses related to the settlement of all outstanding profits interest awards through the distribution of our 65,270,453 Class A common shares held by Accelerant Holdings LP to certain of our officers and employees that fully vested upon the IPO. These expenses were entirely offset by a corresponding capital contribution for that distribution of shares. These expenses only occurred at one point in time (July 2025) and will not recur. • Share-based compensation expenses included within general and administrative expenses: Represents non-cash expense related to the fair value of share-based equity awards granted to employees and directors, including restricted stock units and stock options and other awards that can settle in cash, recognized over the requisite service period for the awards. • Net foreign currency exchange gains (losses): Represents non-cash foreign currency gains or losses related to transactions in currencies other than an operation’s functional currency and are excluded both on the basis of volatility and that such amounts are largely offset by corresponding changes in other comprehensive income primarily based on our intercompany reinsurance. We define "Adjusted Net Income (Loss)" as U.S. GAAP net income (loss) excluding the impact of the following items: (i) net realized and unrealized gains (losses) on investments; (ii) other expenses; (iii) non-recurring profits interest distribution expenses resulting from the IPO; (iv) share-based compensation expenses included within general and administrative expenses; (v) the tax effect of the above adjustments. We define “Adjusted Earnings per Diluted Share” as adjusted net income for a period divided by the corresponding weighted average diluted shares on a U.S. GAAP basis. (GAAP diluted shares are used for simplicity and that any difference from recalculating such diluted shares using adjusted income is expected to be immaterial.) Operating Revenues We define “Operating Revenues” as U.S. GAAP revenues less the impact of net realized and unrealized gains (losses) on investments. Adjusted EBITDA Margin We define “Adjusted EBITDA Margin” as Adjusted EBITDA divided by Operating Revenues. Adjusted EBITDA Margin is an internal performance measure used in the management of our operations. The reconciliation of the above non-GAAP measures to each of their most directly comparable GAAP financial measures is set forth in the reconciliation table accompanying this document.
3 Our Vision To become the preeminent specialty insurance marketplace
1st Quarter 2026 Update
5 First Quarter Highlights Strong momentum across the platform driving attractive financial outcomes • $1,139M Exchange Written Premium (+16% y/y(1)) and $273M of Operating Revenue (+57% y/y) • $66M Adjusted EBITDA (+70% y/y), 24% margin • $60M Fee-based Adjusted EBITDA(2) (+112% y/y) • 52% gross loss ratio Financial Operational • +16 new Members in the quarter bringing total to 296 Members (28% y/y growth) and continued strong pipeline • Finished the quarter with 96 Risk Capital Partners • Training our models on 156 million rows of proprietary data spanning 62 thousand unique attributes – our data and models improve loss ratios + growth and should compound in value over time Other • $462M third-party written premium (41% of Exchange Written Premium vs. 19% in 1Q ‘25 and 40% in 4Q’25) • Hadron’s mix of third-party written premium decreased from 47% in 4Q ‘25 to 41% in 1Q ‘26 Notes: Please see the Appendix for reconciliations of non-GAAP items (1) Exchange Written Premium +22% y/y growth excluding terminated Canadian Member with subpar unit economics (2) Fee-based Adjusted EBITDA represents consolidated Adjusted EBITDA less Underwriting Segment Adjusted EBITDA
6 How We Performed in Q1 Strong execution across all of our KPIs Supply Side Demand Side 1Q ‘25 4Q ‘25 1Q ‘26 Commentary ARX Net Retained %(1) 8% 10% Financials ($M) Operating Revenue Adjusted EBITDA $174 $273 $39 $66 Retention in line with expectations +57% y/y growth driven by organic growth and premium earning through 24% adjusted EBITDA margin (vs. 22% prior year) Fee-based adjusted EBITDA(2) grew 112% y/y to $60 million Adjusted Net Income $0.17 adjusted earnings per diluted share$17 $38 Exchange Premium ($M) $985 $1,139 +16% y/y growth +22% y/y growth excluding terminated Canadian Member 3rd Party % 19% 41% Continued ramping of onboarded third-party risk exchange insurers. $275M was written with non-Hadron risk exchange insurers Gross Loss Ratio 53% 52% Strong gross loss ratio performance as portfolio continues to perform as expected Net Revenue Retention 157% 116% 122% net revenue retention excluding terminated Canadian Member Member Count 232 296 +16 in the quarter driven by new independent Members – Member count grew 28% y/y Notes: Please see the Appendix for reconciliations of non-GAAP items. (1) Net retained is calculated on a trailing twelve-month basis (2) Fee-based Adjusted EBITDA represents consolidated Adjusted EBITDA less Underwriting Segment Adjusted EBITDA 9% $245 $67 $46 $1,090 40% 51% 126% 280
7 Trailing Twelve Months Highlights Last Year (TTM 1Q’25) Grew volume on our exchange 24%(1) year-over-year (all organic) $3.5B Exchange Written Premium $4.3B Exchange Written Premium Today (TTM 1Q’26) Increased number of Members by +64 year-over-year 232 Members 296 Members Wrote more premium with third party insurers 18% Third-Party Written 35% Third-Party Written And retained a small amount of premium 8% % of Exchange Written Premium 10% % of Exchange Written Premium Improved margins from growth and emerging operating leverage 16% Adj. EBITDA Margin 27% Adj. EBITDA Margin Fee-based(2) segments drive 154% year-over-year growth $103M Adj. EBITDA $262M Adj. EBITDA Maintained healthy profitability for our risk capital partners 54% Gross Loss Ratio 51% Gross Loss Ratio 7 Notes: Please see the Appendix for reconciliations of non-GAAP items. (1) Exchange Written Premium +30% LTM y/y growth excluding run-off of Member with subpar unit economics (2) Fee-based Adjusted EBITDA represents consolidated Adjusted EBITDA less Underwriting Segment Adjusted EBITDA
8 Supply Side: Existing Members Drive Embedded Growth Organic volume is the key driver of our growth, not rate + New Member Additions (+16 in 1Q’26) + Net Revenue Retention (same-set Members y/y growth +116%(1)) Grew Risk Exchange volume +24% LTM year-over-year (1) (all organic) Notes: (1) Exchange Written Premium +30% LTM y/y growth and +122% Net Revenue Retention excluding terminated Canadian Member (2) 2023 cohort includes Canadian Member terminated starting in 3Q’25 Only 3-points of LTM Q1’26 24% growth came from rate, volume 21% Property 41% Liability 35% Prof. & Financial Risks, 10% Bonds/Warranty 7% Motor 5% Ocean Marine 2% Other <1% + Specialty Commercial Premium ($4.3B) + Geographically Diverse (US, UK, EU, CA) + Low Premium Policies (95% < $10k) Diverse, small, commercial specialty premium Based on Exchange Written Premium LTM Q1’26 557 966 1,187 1,495 1,772 1,839 235 407 572 627 621 193 666 817 828375 702 726 274 301 30 557 1,201 1,787 3,108 4,191 4,344 2021 2022 2023 2024 2025 LTM Q1'26 Exchange Written Premium ($M) by Member Cohort 2021 & Prior 2022 2023 2024 2025 2026 (2)
9 Demand Side: Risk Capital Partners Executing on our plan to increase third-party premiums Three Types of Risk Capital Partners… …With an Increasing Share Written via Third-Party… …and More Shared with Risk Capital Partners Traditional Reinsurers Institutional Investors Risk Exchange Insurers • AM Best-rated reinsurers standing behind Accelerant and 3rd party insurers in exchange for a fee (ceding commission) • Yield-oriented investors contributing capital to the Flywheel vehicles and other, 3rd party collateralized reinsurers Ex: Flywheel I/II • AM Best-rated 3rd party insurance companies focused on writing primary policies and may maintain a majority of the risk 0% 10% 16% 30% 35% FY2022 FY2023 FY2024 FY2025 LTM Q1'26 Third-Party Direct Written Premium 1,015 1,596 2,854 3,832 3,908 FY2022 FY2023 FY2024 FY2025 LTM Q1'26 Exchange Premium Shared With Risk Capital Partners ($M)
• Other non-Hadron third party insurers premiums written are 4.5x since 1Q’25 and are expected to continue growing rapidly • Hadron’s mix of third-party premium declined this quarter and is expected to continue trending down. • In 2026, we expect Hadron to account for 35%-40% of third-party premium for full year 2026 and below one-third in 4Q’26 Third Party Risk Exchange InsurersRisk Exchange Insurer Lifecycle (18 signed up through 1Q’26) Demand Side: How We Work with Risk Exchange Insurers Onboarding third-party insurers takes time, but ramps quickly once complete 10 Visibility of timeline gives us confidence in future ramping of existing and new risk exchange insurers Intro, Diligence & Contracting • Get to know ARX & the value of our offering to their enterprise • Negotiate and sign ARX contracts Portfolio Curation & Licensing • Agree on sub-portfolio and sign individual program agreements • Acquire regulator approvals Insurance Portfolio Construction Reinsurance Implementation & Growth • Operationalize ARX Member & ARX Insurer systems to connect flows • Over time, add products to further diversify sub-portfolio Onboarding Readiness • Runs alongside onboarding to ensure operational readiness Capital Efficiency • Early in the lifecycle, some fronting carriers may cede to Accelerant Re for operational simplicity Direct Cession Transition • Over time, most ARX insurers who begin the relationship ceding to Accelerant Re transition to ceding directly to risk capital partners Months 0-9 Months 19+ Months 10-18 123 170 180 205 188 61 121 156 229 275 184 291 336 434 462 1Q'25 2Q'25 3Q'25 4Q'25 1Q'26 Third-Party Direct Written Premium ($M) Hadron Other Third Party 67% 58% 54% 47% 41% 33% 42% 46% 53% 59% 1Q'25 2Q'25 3Q'25 4Q'25 1Q'26 % of Third-Party Direct Written Premium Hadron Other Third Party
First Quarter and Last Twelve Months Financial Highlights Quarterly ($M) Last Twelve Months ($M) Exchange Premium (1) Operating Revenue Adjusted EBITDA Exchange Premium (2) Operating Revenue Adjusted EBITDA Adjusted Net Income 1Q ‘25 4Q ‘25 1Q ‘26 Commentary $985 $1,139 $174 $273 $39 $66 $627 $965 $103 $262 $50 $158 Adjusted Net Income $17 $38 +16% y/y growth; +22% y/y growth excluding run-off of terminated Member (1) +57% y/y growth driven by organic growth and premium earning through 24% adjusted EBITDA margin (vs. 22% prior year) Fee-based adjusted EBITDA grew 112% y/y to $60 million +30% y/y driven by all organic growth (2) including +122% net revenue retention (2) and ramping of 64 Members added since last year +54% y/y driven by organic growth and premium earning through 27% adjusted EBITDA margin vs. 16% in prior year, driven by continued operating leverage and growth in third-party business Fee-based adjusted EBITDA(3) grew 75% y/y to $211 million $3,510 $4,344 11 $0.17 adjusted net earnings per diluted share $0.77 adjusted earnings per diluted share Notes: Please see the Appendix for reconciliations of non-GAAP items. (1) Exchange Written Premium +22% y/y growth excludes terminated Canadian Member with subpar unit economics (2) Exchange Written Premium +30% y/y growth and +122% Net Revenue Retention excludes terminated Canadian Member (3) Fee-based Adjusted EBITDA represents consolidated Adjusted EBITDA less Underwriting Segment Adjusted EBITDA $1,090 $245 $67 $866 $235 $138 $46 $4,191
First Quarter Segmental Financial Highlights Exchange Services ($M) Underwriting ($M) Operating Revenue Adjusted EBITDA Operating Revenue 1Q ‘25 4Q ‘25 1Q ‘26 Commentary $71 $100 $47 $67 $49 $54 $11 $7 $18 $17 +41% y/y – driven by growth in Exchange Written Premium and take rate increasing from 7.1% to 8.7% y/y 67% adjusted EBITDA margin – 2026 quarter margins estimated to be approximately 70% +10% y/y growth driven by premium growth 31% adjusted EBITDA margin as Mission platform continues to mature 4% adjusted EBITDA margin – driven by healthy 52.1% gross loss ratio $92 $149 MGA Operations ($M) Operating Revenue Adjusted EBITDA Adjusted EBITDA $(14) $(18) 12 Corporate ($M) Adjusted EBITDA +62% y/y – driven by net written premium growth and earning through written premium Notes: Please see the Appendix for reconciliations of non-GAAP items. $93 $63 $57 $11 $21 $109 $(25) In-line with our expectations
13 Guidance Exchange Premium Third Party Adj. EBITDA Q2’26 $1.27-1.32B(1) $580-620M $60-66M FY2026 $5.2B $2.3B $285M Expected to be at least Adjusted EBITDA Key Driver Bridge (2023-2026E) 27 113 180 276 (9) (21) 55 9 18 92 235 285 2023 Adj. EBITDA 2024 Adj. EBITDA 2025 Adj. EBITDA 2026 Adj. EBITDA Adjusted EBITDA Bridge ($M) Fee-Based Segments Underwriting Business expected to continuing mixing towards third-party insurance companies, expect loss ratio performance in line with previous expectations +53% y/y growth of fee-based segments as exchange written premiums grow at least 24% Notes: (1) Midpoint represents 26% y/y growth when excluding terminated Canadian Member (2) Adjusted EBITDA for 2023, 2024 and 2025 have been recast to reflect our updated non-GAAP definition which excludes net realized and unrealized gains (losses) of $18m, $21m and $47m, respectively.
Accelerant Overview
15 Our Founding Theses Two-sided platform connecting specialty underwriters with long-term risk capital 1 2 3 Disaggregated specialist underwriters (MGAs, MGUs, etc.) will outcompete monolithic insurance companies Modern technology will power superior control and influence of underwriting and unlock accelerating economies of scale Large swaths of risk capital want access to a diversified portfolio of low-limit, low-volatility specialty risk, but can’t do it themselves
16 Our Risk Exchange What We Do Members (Typically MGAs) Risk Capital Partners (Insurers, Reinsurers, Institutional Investors) Capacity Risk Capital Risk • Accelerant identifies and onboards Members, who feed the Exchange by underwriting premium • Accelerant’s technological capabilities and approach enable ongoing monitoring of Members and additional growth (distribution, pricing, new products, etc.) • Premium written on or through a primary insurance company (Accelerant-owned or 3rd party) • After application of reinsurance, risk is ultimately retained by a mix of 3rd party Risk Capital Partners, 3rd Party Risk Exchange Insurers, and Accelerant-owned entities Data, Analytics, & AI Digital Platform Expert Service Model Exchange Services fixed fee % of premium Accelerant paid by risk capital for sourcing, managing, and monitoring the portfolio
17 Our Risk Exchange How We Measure Success and Why Key Performance Indicators: • Exchange Written Premium – All the premium written through the exchange. Our core topline figure precipitating our financial outcomes • Net Revenue Retention – Same-set Member trailing twelve-month growth year-over-year. Measures our core organic growth engine • Member Count (and growth) – Number of Members we support. Leading indicator of growth as existing Members ramp and new ones join Key Performance Indicators: • Gross Loss Ratio – Measures the profitability our portfolio correlates directly to the financial return our risk capital partners receive • 3rd Party Written Mix – % of Exchange Written Premium written with insurance companies not owned by ARX. Lowers ARX capital needs • Accelerant Net Retained – % of Exchange Written Premium retained by ARX. The lower our net retention, the lower our capital needs Demand Side (Risk Capital Partners)Supply Side (Members)
Who We Are Premium Growth 116% 49% 74% 35% 24% Operating Revenue Growth 120% 47% 78% 49% 54% Adj. EBITDA Margin -16% 11% 16% 27% 27% Members (Typically MGAs) Risk Capital Partners (Insurers, Reinsurers, Institutional Investors) Capacity Risk Capital Risk Data, Analytics, & AI Digital Platform Expert Service Model Two-sided platform connecting specialty underwriters with long-term risk capital 8% Exchange Services fixed % fee of premium Our Founding Theses: Disaggregated specialist underwriters (MGAs, MGUs, etc.) will outcompete monolithic insurance companies Modern technology will power superior control and influence of underwriting and unlock accelerating economies of scale Large swaths of risk capital want access to a diversified portfolio of low-limit, low-volatility specialty risk, but can’t do it themselves 1 2 3 18 Notes: Please see the Appendix for reconciliations of non-GAAP items. 1,201 1,787 3,108 4,191 4,344 223 326 582 866 965 (36) 36 92 235 262 2022 2023 2024 2025 LTM 1Q '26 Financials ($M) Exchange Written Premium Operating Revenue Adj. EBITDA
Who We Are Two-sided platform connecting specialty underwriters with long-term risk capital 296 Members 96 Risk Capital Partners $252B+ Serviceable Addressable Market +24% LTM 1Q ’26 Exchange Written Premium Growth (All Organic) $4.3B LTM 1Q ’26 Exchange Written Premium Founded in 2018, our two-sided platform continues to scale rapidly, organically… • For our Members (typically MGAs, MGUs, or program administrators), we endeavor to be the best partner in the world. We provide (a) the long-term insurance capacity they need to issue policies, (b) a modern data & analytics platform to drive superior underwriting, and (c) discounts or optimizations on shared Member services • For our risk capital partners (insurers, reinsurers, and institutional investors), we deliver a diversified portfolio of low-limit, low- volatility specialty risk that they may struggle to access and/or appropriately manage on their own 19 Notes: (1) Exchange Written Premium +30% LTM y/y growth excluding terminated Canadian Member with subpar unit economics (1)
20 Accelerant’s Market Opportunity We support MGAs as they continue to take share in an attractive, growing market US Commercial P&C premiums continue to grow, led by strong expansion in E&S, our core market… …within this growth, US MGAs continue to take share, a trend Accelerant is built to support and capitalize on <$10k, 95% $56 $66 $83 $98 $116 $130 $331 $345 $391 $436 $465 $489 2019 2020 2021 2022 2023 2024 US Commercial P&C Direct Premiums ($B)(1) E&S Commercial P&C 13.7% 13.6% 14.3% 16.7% 17.0% 18.8% 2019 2020 2021 2022 2023 2024 US MGA Premiums as % of Commercial P&C(2) Notes: (1) Source: U.S. Department of the Treasury, A.M. Best; CAGR shown for the period 2019 to 2024 (2) Source: Conning press releases E&S CAGR(1) 18% P&C CAGR(1) 8% $45 $47 $56 $73 $79 $92MGA DWP ($B)
80 90 100 110 120 130 140 150 N or m al ize d C um ul at ive R at e C ha ng e US Cumulative Quarterly Rate Increases by Account Size Small Medium Large Note: Rate change data from Council of Insurance Agents & Brokers 21 View on the Rate Cycle Less exposed to rate cycle than P&C generally because of focus on small niche policies. Rate made up only 3% of our 24%(1) LTM year-over-year growth Accelerant primarily writes very low premium policies… …which are typically more insulated from rate cycles “Small” accounts are defined here as broker commissions <$25k. 95% of Accelerant policies have premium <$10k 0% 20% 40% 60% 80% 100% Percentage of Total Policies by Policy Size <$10k, 95% Notes: (1) Exchange Written Premium +24% y/y LTM growth includes terminated Canadian Member with subpar unit economics. Grew +30% y/y LTM excluding said Member
k 22 Proprietary and Differentiated Technology, Data, and Analytics Weather Data Crime Data Fire Data Financial Data Socio-demographic Data MGA Policy Admin Systems TPA Claims Systems MGA Financial Systems Risk Capital Partners Member MGA’s Relationship Directors Accelerant Employees AI & Data Platform Digital Platform Data pipelines include validations and transformations AI & Data Pipelines Data-driven decisions delivered faster with accelerating economies of scale 1.9k+ Unique mappings or integrations 156M Rows of proprietary data 62k Unique attributes Building proprietary models trained on our unique data to drive profitable underwriting growth
23 Technology that compounds our advantage Proprietary infrastructure that improves as we scale AI-powered ingestion that cleans, standardizes, and enriches every data point to widen our information advantage with every submission Proprietary underwriting engine combining data from Members and third parties to drive improved loss ratios As our data grows and decisioning sharpens, the time cost reduces across every function for our Members and us Deepening data moat Centralized decisioning at scale Compounding efficiency gains • 75% y/y data growth • 24/7 data surveillance • 700+ specialty products standardized into a single model • Risk research delivered in seconds vs 30-45 minutes • Up to 20pp Member loss ratio improvement where deployed • 25% improvement in Member productivity where deployed • 70% fewer manual cash management touchpoints • 80% reduction in time for exploratory actuarial analytics
Experienced Team Leading the Revolution From Within Diverse team marrying modern software with long-earned insurance expertise Steve Strauss US CUO Former: SCOR, W.R. Berkley Ryan Schiller Head of Strategy Former: Altamont Dave Gronski Head of Analytics Former: Argo, Munich Re Jack Buckley Chief Actuary Former: Argo, Beach & Associates Kenny Holms Chief Data Science & AI Officer Former: Acrisure, Argo Former: Qlik, IBM Linda Huber CFO Former: Moody’s, MSCI, FactSet, PepsiCo Matt Sternberg COO of Risk Exchange Former: BCG, Goldman Sachs Rich Koehler US Chief Business Officer Former: Aon, Guy Carpenter, Hamilton Chris Lee-Smith Co-Founder & Head of Distribution Former: Argo, Aon, Willis Towers Watson Hugh Burgess Chief Portfolio Officer Former: Allianz, Vindati Frank O’Neill Co-Founder & Group CUO Former: Swiss Re, Liberty Group Former: Brit Insurance, Liberty Group Chelsea Perkins Global Head of Claims Matt Chmiel Head of Product Design Former: Kinaxis Pete Horst CTO Joe Bickley VP Product Mgmt. Former: Veeva, Qlik Kathy Hickey Chief Product Officer Former: Qlik, CA Technologies Stefan Walther Chief Data Officer Former: i2x, Qlik Jeff Radke Co-Founder & CEO Former: Argo, PXRE, Guy Carpenter 24 Cliff Jenks General Counsel Former: Reinsurance Group of America Ray Iardella Head of Investor Relations Former: Gallagher
25 How We Make Money Risk Capital Pays us to source, manage, and monitor specialty risk Independent Members Mission Members Owned Members $3,094M 25% Y/Y $437M 8% Y/Y $814M 31% Y/Y 18% MGA Operations Net Commission (1) 8% Exchange Services Take Rate (2) Exchange Written Premium $4,344M 24% Y/Y 4% Underwriting Fees & Net Results (3) Accelerant Underwriting $2,821M Third Party Non-Accelerant Underwriting $1,523M 143% Y/Y $996M Third-Party Risk Capital Partners $2,911M$527M $996M Commissions Net Retention $437M 10% of total Notes: Based on LTM 1Q’2026 financials (1) Calculated as MGA Operations direct commission income and net investment income divided by Exchange Written Premium attributable to Mission Members and Owned Members (2) Calculated as Exchange Services direct commission income divided by Exchange Written Premium (3) Calculated as net earned premium and ceding commission income, reduced by losses and loss adjustment expenses and the amortization of DAC, plus net investment expressed as a percentage of total Underwriting gross earned premium
26 How We Make Money LTM 1Q ‘26 8% Take Rate (1) $4.3B Total Exchange Written Premium $359M Direct Commission Income (1) 18% Net Commission (2) $1.3B Exchange Written Premium from Mission & Owned Members $219M Revenue excl. certain investment gains(2) 3% Fees & Net Underwriting Result (3) $3.2B Gross Earned Premium $106M Fees & Net Underwriting Result Exchange Services MGA Operations Underwriting Notes: Based on 2026 financials (all amounts exclude general & administrative expenses). (1) Calculated as Exchange Services direct commission income divided by Exchange Written Premium (rounded from 8.3%) (2) Calculated as MGA Operations direct commission income and net investment income, divided by Exchange Written Premium attributable to Mission Members and Owned Members (rounded from 17.5%) (3) Calculated as net earned premium and ceding commission income, reduced by losses and loss adjustment expenses and the amortization of DAC, plus net investment income expressed as a percentage of total Underwriting gross earned premium (rounded from 3.4%)
Member 1, 7% Member 2, 7% Member 3, 3% Member 4, 3% Member 5, 3% Members 6-10, 10% Members 11-20, 11% All Other Members, 56% 27 Members: Future Growth Driven by New & Existing Members LTM 1Q’26 Exchange Written Premium by Member Member mix increasingly diversifying As expected, includes running off $67M LTM premium Member with subpar unit economics Why Members Choose Accelerant “The only success is shared success” Modern technology making their portfolios more profitable Long-term capacity unlocking their time and expertise Discounts and preferred vendors on Membership- wide shared services Grew Risk Exchange volume 24% LTM year-over-year (1) (all organic) Notes: (1) Exchange Written Premium +24% y/y LTM growth includes terminated Canadian Member with subpar unit economics. Grew +30% LTM y/y excluding said Member (2) 2023 cohort includes terminated Canadian Member put into run-off starting in 3Q’25 557 966 1,187 1,495 1,772 1,839 235 407 572 627 621 193 666 817 828375 702 726 274 301 30 557 1,201 1,787 3,108 4,191 4,344 2021 2022 2023 2024 2025 LTM Q1'26 Exchange Written Premium ($M) by Member Cohort 2021 & Prior 2022 2023 2024 2025 2026 (2)
28 Risk Capital Partners: Growing With Us 96 Risk Capital Partners Supported on Platform Third-Party Reinsurers Institutional Investors Risk Exchange Insurers 72 6 18 Benefitting from Differentiated Value Proposition Reduced overhead expenses Carefully managed, globally diversified portfolio Scalable, otherwise difficult-to-access portfolio Data transparency and real-time monitoring into risk Reinsurance and alternative capital expertise Largest Ultimate Risk Takers % of LTM 1Q’26 Exchange Written Premium Tenure w/ ARX A.M. Best Partner 1 4 years n/a Top 15 largest asset manager Partner 2 3 years A Large Asia-Pacific reinsurer Partner 3 5+ years A+ Large European insurer Partner 4 1 year n/a Large asset manager Partner 5 4 years n/a Large asset manager Total risk capital partners grew to 96 in 1Q’26 Executing on our plan to increase third-party premiums Partner 1 (Flywheel A), 11% Partner 2, 7% Partner 3, 6% Partner 4, 5% Partner 5 (Flywheel B), 5% All Others, 65% 1,015 1,596 2,854 3,832 3,908 FY2022 FY2023 FY2024 FY2025 LTM Q1'26 Exchange Premium Shared With Risk Capital Partners ($M)
101 223 326 582 866 965 2021 2022 2023 2024 2025 LTM Q1'26 557 1,201 1,787 3,108 4,191 4,344 5,200 2021 2022 2023 2024 2025 LTM Q1'26 FY'26 Guide 62 101 155 217 280 296 2021 2022 2023 2024 2025 LTM Q1'26 29 Strong Embedded Organic Growth: +24% LTM Year-Over-Year (1) # of Members Exchange Written Premium (2) Operating Revenues Adjusted EBITDA (2) $ in millions $ in millions $ in millions YoY Growth Margin %YoY Growth YoY Growth Governor on our growth has been how many high-quality Members we onboard Notes: Please see the Appendix for reconciliations of non-GAAP items (1) Exchange Written Premium +24% LTM y/y growth includes impact of terminated Canadian Member with subpar unit economics. Growth was +30% LTM y/y excluding said Member (2) Full Year 2026 guidance is for at least $5.2 billion of Exchange Written Premium and at least $285 million of Adjusted EBITDA 28% (6) (36) 18 92 235 262 285 2021 2022 2023 2024 2025 LTM Q1'26 FY'26 Guide 29%40%53%63% 24%35%74%49%116% 54%49%78%47%120% 27%27%16%11%-16%
(6) (36) 18 92 235 262 101 223 326 582 866 965 2021 2022 2023 2024 2025 LTM 1Q '26 30 Key Financial Highlights Consolidating Adjustments (Net of Corp. & Other) Notes: (1) Represents segmental financials, i.e., financials by segment as written, before Exchange Services / MGA Operations adjusted on earned basis similar to underwriting segment and before impact of corporate, intercompany transactions and other consolidating adjustments (2) Operating Revenues, Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures. Refer to the appendix for reconciliation to GAAP Adj. EBITDA ($M) (2) Operating Revenues ($M) (2) Adj. EBITDA Margin Adj. EBITDA Margin 70 9919 132 Adj. EBITDA Margin Exchange Services (1) ConsolidatedMGA Operations (1) Underwriting (1) 2021 2022 2023 2024 YoY Growth 107% 21% 74% 71%76% 81% 71% 120% 47% 16% 78% YoY Growth 6% 130% 72% 12% 22%15% 44% YoY Growth 29% 189% 50% 74%YoY Growth 2021 2022 2023 2024 67% 36% 2025 118 2025 27% 49% Gross Loss Ratio 56% 51%56% 54% 50% 45% 25% 51% 49 102 123 223 335 364 2021 2022 2023 2024 2025 LTM 1Q '26 45% 67% 26 60 103 148 215 219 2021 2022 2023 2024 2025 LTM 1Q '26 29% 35% 38% LTM 1Q ‘26 51% 54% 110 LTM 1Q ‘26 27% 32 5415 52 48 31 37 76 87 158 225 245 2021 2022 2023 2024 2025 LTM 1Q '26 4 7 22 43 78 77 2021 2022 2023 2024 2025 LTM 1Q '26 45 131 196 341 428 485 2021 2022 2023 2024 2025 LTM 1Q '26 (26) (75) (9) (21) 55 51
Appendix
$ in millions, unless otherwise noted 2023 2024 2025 LTM 1Q’25 LTM 1Q’26 LTM 1Q’26 Commentary Net (loss) income $ (64.1) $ 22.9 $ (1,345.2) $ 28.6 $ (1,357.1) Adjustments: Net realized & unrealized gains on investments (17.8) (20.9) (47.3) (25.3) (43.4) Profits interest distribution expenses - - 1,379.7 - 1,379.7 Share-based compensation expenses 4.8 8.4 53.6 8.6 83.3 Other expenses: Professional costs - corp. development & capital raise 16.2 13.1 52.7 14.1 53.1 System development non-operating costs 22.9 14.7 20.0 16.6 22.7 Mission profit sharing expenses - 7.0 27.6 8.6 29.7 Miscellaneous other expenses 7.2 4.2 3.8 5.1 4.5 Total other expenses 46.3 39.0 104.1 44.4 110.0 Tax effect of adjustments to net (loss) income (5.1) (6.6) (7.0) (6.1) (14.2) Adjusted net (loss) income $ (35.9) $ 42.8 $ 137.9 $ 50.2 $ 158.3 Adjustments: Add back tax effect of adjustments to net income (loss) 5.1 6.6 7.0 6.1 14.2 Income tax expense 20.2 9.1 23.3 6.9 21.7 Interest expenses 10.9 12.1 10.9 11.7 10.8 Depreciation and amortization 14.5 26.6 35.2 29.1 37.8 Net foreign exchange losses (gains) 3.5 (5.1) 20.2 (1.0) 19.0 Adjusted EBITDA $ 18.3 $ 92.1 $ 234.5 $ 103.0 $ 261.8 Total revenues $ 344.0 $ 602.6 $ 912.9 $ 652.5 $ 1,008.2 Less: net realized & unrealized gains on investments (17.8) (20.9) (47.3) (25.3) (43.4) Operating revenues $ 326.2 $ 581.7 $ 865.6 $ 627.2 $ 964.8 Adjusted EBITDA margin 6% 16% 27% 16% 27% Adjusted earnings per diluted share $ (0.22) $ 0 .21 $ 0.72 $ 0.25 $ 0.77 Weighted-average common shares outstanding – diluted (1) 165,604,641 199,663,694 190,260,158 201,207,584 205,187,138 32 Reconciliation of Non-GAAP Financial Measures • Non-cash, equity neutral settlement of all outstanding profit interest awards in predecessor LP by distributing 65.3 million Class A shares to officers & employees just before IPO • Primarily legal, advisory, and IPO-related costs in connection with corporate development activity, including M&A. $41.6M related to strategic transactions and $11.4M to Mission • Primarily global ERP system and integrated financial reporting systems • Deferred compensation related to profitable Mission series. Includes $15.6M related to permanent settlement of profit sharing arrangements for our three largest Mission Members • Includes severance costs and irrecoverable VAT expenses (1) Adjusted earnings per diluted share is calculated as adjusted net income for the respective periods divided by the corresponding weighted average diluted shares on a U.S. GAAP basis (GAAP diluted shares are used for simplicity and that any difference from recalculating such diluted shares using adjusted income is expected to be immaterial)
$ in millions, unless otherwise noted 1Q ‘25 4Q ‘25 1Q ’26 Net income (loss) $ 7.8 $ 0.9 $ (4.1) Adjustments: Net realized & unrealized gains on investments (4.0) (3.9) (0.1) Share-based compensation expenses 2.4 21.2 32.1 Other expenses: Professional costs - corp. development & capital raise 3.6 6.0 4.0 System development non-operating costs 4.6 6.6 7.3 Mission profit sharing expenses 1.6 19.2 3.7 Miscellaneous other expenses 2.0 1.7 2.7 Total other expenses 11.8 33.5 17.7 Tax effect of adjustments to net income (loss) (0.7) (6.1) (7.9) Adjusted net income $ 17.3 $ 45.6 $ 37.7 Adjustments: Add back tax effect of adjustments to net income (loss) 0.7 6.1 7.9 Income tax expense (benefit) 7.7 (3.1) 6.1 Interest expenses 2.6 3.2 2.5 Depreciation and amortization 7.4 9.5 10.0 Net foreign exchange losses 3.1 5.3 1.9 Adjusted EBITDA $ 38.8 $ 66.6 $ 66.1 Total revenues $ 178.0 $ 248.4 $ 273.3 Less: net realized & unrealized gains on investments (4.0) (3.9) (0.1) Operating revenues $ 174.0 $ 244.5 $ 273.2 Adjusted EBITDA margin 22% 27% 24% Adjusted earnings per diluted share $ 0.08 $ 0.21 $ 0.17 Weighted-average common shares outstanding – diluted (1) 205,273,147 221,821,270 221,984,101 33 Reconciliation of Non-GAAP Financial Measures – cont’d (1) Adjusted earnings per diluted share is calculated as adjusted net income for the respective periods divided by the corresponding weighted average diluted shares on a U.S. GAAP basis (GAAP diluted shares are used for simplicity and that any difference from recalculating such diluted shares using adjusted income is expected to be immaterial)
34 Segmental Income Statement 1Q 2025 $ in millions Exchange Services MGA Operations Underwriting Total Segments Corporate and Other Consolidation and elimination adjustments Total Ceding commission income $ - $ - $ 19.2 $ 19.2 $ - $ 51.5 $ 70.7 Direct commission income: Affiliated entities 59.0 31.5 - 90.5 - (90.5) - Unaffiliated entities 11.2 16.9 - 28.1 - - 28.1 Net earned premiums - - 63.0 63.0 - - 63.0 Net investment income 0.6 0.9 10.0 11.5 0.7 - 12.2 Operating revenues 70.8 49.3 92.2 212.3 0.7 (39.0) 174.0 Losses and loss adjustment expenses - - 45.2 45.2 - - 45.2 Amortization of deferred acquisition costs - - 24.8 24.8 - (7.7) 17.1 General and administrative expenses (1) 23.8 31.2 11.5 66.5 14.5 (8.1) 72.9 Adjusted EBITDA $ 47.0 $ 18.1 $ 10.7 $ 75.8 $ (13.8) $ (23.2) $ 38.8 1Q 2026 $ in millions Exchange Services MGA Operations Underwriting Total Segments Corporate and Other Consolidation and elimination adjustments Total Ceding commission income $ - $ - $ 10.0 $ 10.0 $ - $ 70.5 $ 80.5 Direct commission income: Affiliated entities 72.7 28.8 - 101.5 - (101.5) - Unaffiliated entities 26.4 24.4 - 50.8 - - 50.8 Net earned premiums - - 129.8 129.8 - - 129.8 Net investment income 0.9 0.9 9.2 11.0 1.1 - 12.1 Operating revenues 100.0 54.1 149.0 303.1 1.1 (31.0) 273.2 Losses and loss adjustment expenses - - 81.8 81.8 - - 81.8 Amortization of deferred acquisition costs - - 49.0 49.0 - (15.4) 33.6 General and administrative expenses (1) 32.7 37.3 11.7 81.7 19.3 (9.3) 91.7 Adjusted EBITDA $ 67.3 $ 16.8 $ 6.5 $ 90.6 $ (18.2) $ (6.3) $ 66.1 (1) Share-based compensation expenses are included in the "General and administrative expenses" within the condensed consolidated statements of operations
(1) Fee-based segments amounts represent consolidated less Underwriting segment 35 Free Cash Flow (excluding Underwriting Segment) Strong FCF conversion driven by Exchange Services & MGA Ops segments Free Cashflow $ in millions FY25 Consolidated Adj. EBITDA $ 235 (-) Underwriting Segment Adj. EBITDA (55) Adj. EBITDA – Fee-Based Segments (1) $ 180 Net Cashflow from Operations 445 (-) Underwriting Segment (311) Net Cashflow from Operations – Fee-Based Segments (1) $ 134 (-) Capital Expenditures (41) (+) Interest Expense 11 Unlevered Free Cashflow – Fee-Based Segments (1) $ 104 % of Adj. EBITDA – Fee-Based Segments (1) 58% (+) Professional Costs Related to Corporate Development and Capital Raising Activities 28 (+) Managed Services Agreement Termination Fee 25 Unlevered Free Cashflow (excl. Certain Other Expenses) – Fee-Based Segments (1) 157 % of Adj. EBITDA – Fee-Based Segments (1) 87%
36 Total Enterprise Value Accelerant Holdings $ in millions (except for Share Price) Shares Outstanding (M) 221.4 (x) Share Price Assumption ($) (1) 13.20 Market Capitalization ($M) $ 2,922.5 (-) Cash in Non-Underwriting Entities (3/31/26) (352.2) (+) Senior Debt (3/31/26) 120.7 (+) Non-Controlling Interests 27.3 Total Enterprise Value ($M) $ 2,718.3 (1) Share price as of market close on May 8, 2026
37 Loss Ratio $ in millions Gross Ceded – Quota Share Ceded – XOL & Other Net Loss Ratio Earned Premium $ 782.1 $ (623.0) $ (29.3) $ 129.8 Losses and LAE 407.3 (327.7) 2.2 81.8 Loss Ratio 52.1% 52.6% (7.5)% 63.0% 1Q’26 Gross-to-Net Loss Ratio Reconciliation $ in millions Gross Ceded – Quota Share Ceded – XOL & Other Net Loss Ratio Earned Premium $ 718.8 $ (620.4) $ (35.4) $ 63.0 Losses and LAE 382.8 (327.2) (10.4) 45.2 Loss Ratio 53.3% 52.7% 29.4% 71.7% 1Q’25 Gross-to-Net Loss Ratio Reconciliation Notes: “XOL” represents excess of loss reinsurance, and differences in gross vs. net loss ratios are due to reinsurance decisions that we make as a company Gross loss ratio reflects underlying performance for our risk capital partners
38 Definitions • Accelerant Direct Written Premium: Expressed as a percentage of Exchange Written Premium, the GWP written directly by Accelerant Underwriting companies, the majority of which we cede to Risk Capital Partners through our reinsurance arrangements. • Accelerant GWP: The total GWP written by Accelerant Underwriting companies (both written by our insurance company and assumed as a reinsurer), the majority of which we cede to Risk Capital Partners through our reinsurance arrangements. • Accelerant Re: Accelerant Re (Cayman) Ltd and Accelerant Re I.I. • Accelerant-Retained Exchange Premium: Expressed as a percentage, as Accelerant GWP net of ceded written premium for the trailing twelve-month period, divided by total Exchange Written Premium for the trailing twelve-month period. • Accelerant Risk Exchange: The Accelerant technology, data ingestion, and agency operations that serve the needs of our Members and Risk Capital Partners. • Accelerant Risk Exchange Insurer: Third-party Primary Insurance Company deploying underwriting capacity directly through Accelerant Risk Exchange. • Accelerant Underwriting: Accelerant’s owned insurance companies and reinsurance companies, and all revenue and expenses associated with them. • DAC: Deferred acquisition costs. • Exchange Written Premium: The total gross written premium written through Accelerant Risk Exchange, including both gross written premiums of Accelerant Underwriting companies and Accelerant Risk Exchange Insurers. • Exchange Written Premium Growth Rate: The percentage increase in Exchange Written Premium in the current period compared to Exchange Written Premium from the comparable period in the prior year period. • Flywheel Re: Collectively, Flywheel Re Ltd. SPC and Flywheel Holdings Ltd. SPC, a Cayman Islands holding company that indirectly owns Flywheel Re Ltd. SPC (unconsolidated reinsurance sidecar entities), sponsored by Accelerant and through which institutional investors are offered specialty insurance risk and returns that are relatively uncorrelated with broader financial markets. • GAAP: Accounting Principles Generally Accepted in the US. • Gross Loss Ratio: Gross incurred losses and loss adjustment expense divided by gross earned premium (expressed as a percentage). Gross loss ratio excludes the impact of premium and loss and loss adjustment expense ceded to reinsurers. Gross loss ratio represents the percentage of gross premium earned during the period that will be required to pay current and future claims, based on management’s best estimates. • GWP: Gross written premium, representing the total amount of premium contracted for all policies issued in a given period. • Independent Members: Members in which Accelerant does not own an interest. • Independent Premium: The gross premium written by Independent Members and placed through Accelerant Risk Exchange. • LAE: Loss adjustment expense. • Members: Specialized underwriters, including MGAs, MGUs, and program managers (terms we use interchangeably) that underwrite insurance premiums on behalf of Risk Capital Partners through Accelerant Risk Exchange. • MGA: Managing general agent; a third-party agent that receives delegated underwriting authority from a Primary Insurance Company to write insurance risk on its behalf. The term “MGA” refers generically to agents receiving this delegation of underwriting authority, including MGUs, MGAs, and/or program managers and any Member or other entity in relation to which the term “MGA” is used and may not fall within the regulatory definition of a “managing general agent” in the jurisdictions in which it operates. • MGU: Managing general underwriter; a third-party agent that receives delegated underwriting authority from a Primary Insurance Company to write insurance risk on its behalf. • Mission Europe: Mission Holdings Europe Ltd., one of our subsidiaries. • Mission Members: Specialty underwriters that operate and develop through Mission Underwriters and in which we have an equity ownership interest. • Mission Underwriters: Mission Underwriters provides specialty underwriters with the working capital, operational support, and balance sheet capacity necessary to operate their own MGAs, in which the specialty underwriters have a majority ownership interest. These MGAs are Members of Accelerant Risk Exchange. Mission Underwriters operates in the US, UK and EU through Mission US and Mission Europe. • Mission US: Mission Underwriting Holdings, LLC. • Net Revenue Retention: Expressed as a percentage, the current period’s Exchange Written Premium of Members that were actively writing Exchange Written Premium in the prior period divided by these same Members’ prior-period Exchange Written Premium. This measure demonstrates an aggregate measure of the net growth of Exchange Written Premium from Members. • Owned Members: Members in which Accelerant either has a minority equity ownership interest or controlling equity interest. • Owned Premium: The premium produced by Mission Members and Owned Members, who receive commissions for sourcing and underwriting business. • Primary Insurance Company: Licensed carriers who write business and thus are responsible for insurance policy forms, rate filings, etc. Primary Insurance Companies may reinsure a portion of the risk they have written to third-party reinsurers. • Reinsurer: An insurance company that insures risk written by another insurance company. Reinsurers generally are not required to be licensed directly in a given jurisdiction to provide such reinsurance coverage; however, absent any such license, reinsurers are limited only to writing such risk in a secondary reinsurance capacity and not in a primary direct capacity. • Risk Capital Partners: Third-party insurance companies, reinsurers or institutional investors that provide capacity through Accelerant Risk Exchange, directly or indirectly. • Third-Party Direct Written Premium: GWP written directly with Accelerant Risk Exchange Insurers. • TPA: Third-party administrator, providing claims handling and other operational functions related to administration of insurance policies. • US-UK Tax Treaty: The Convention between the Government of the United States of America and the Government of the United Kingdom of Great Britain and Northern Ireland for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and on Capital Gains, signed July 24, 2001.
FAQ
How did Accelerant Holdings (ARX) perform financially in Q1 2026?
Accelerant posted strong Q1 2026 growth, with Operating Revenues of $273.2 million, up 57% year over year, and Exchange Written Premium of $1.14 billion, up 16%. Adjusted EBITDA rose 70% to $66.1 million, while GAAP results showed a net loss of $4.1 million.
What were Accelerant Holdings’ key profitability metrics in Q1 2026?
Profitability improved on a non-GAAP basis. Adjusted net income was $37.7 million, up 118% year over year, and Adjusted EBITDA reached $66.1 million with a 24% margin. The gross loss ratio was 52.1%, slightly better than 53.3% in Q1 2025, indicating stable underwriting performance.
What guidance did Accelerant Holdings (ARX) give for Q2 and full-year 2026?
For Q2 2026, Accelerant expects Exchange Written Premium of $1.27–$1.32 billion, third-party direct written premium of $580–$620 million, and Adjusted EBITDA of $60–$66 million. For full-year 2026, it targets at least $5.2 billion Exchange Written Premium and at least $285 million Adjusted EBITDA.
How is Accelerant Holdings’ business mix evolving toward third-party and fee-based revenue?
Third-party direct written premium represented 41% of Exchange Written Premium in Q1 2026, up from 19% a year earlier. Fee-based Adjusted EBITDA reached $60 million, increasing 112% year over year, underscoring growth in capital-light, fee-driven segments over balance-sheet underwriting.
What do Accelerant Holdings’ cash flow and balance sheet look like after Q1 2026?
Net cash used in operating activities was $21.4 million in Q1 2026, and net cash used in investing activities was $211.6 million. Cash, cash equivalents and restricted cash totaled $1,536.5 million at March 31, 2026, versus $1,799.3 million at year-end 2025.